It’s no surprise that the auto insurance quote and business insurance quote process are very similar – in fact, they are almost the same.
This can make it seem like getting a business insurance quote will be just as fast and easy as getting an auto insurance quote.
but that’s not true at all! In fact, there are several reasons why it takes longer to get a business insurance quote than it does to get an auto insurance quote, so we’ve put together this list of the top 7 reasons why it takes longer to get a business insurance quote than an auto insurance quote.
The amount of coverage required
The type of coverage you need for your business is dependent on the size of your company and the risks involved.
Some providers offer insurance packages to cover all types of businesses, but some will only cover certain industries like construction or retail.
If you are unsure what coverage to get, it’s best to consult with an insurance agent that specializes in small business plans.
Aside from finding the right type of coverage, there are other factors that can affect how much time it takes to purchase a policy.
For example, if you’re not used to shopping around for car insurance rates online and want advice on the best plan for your situation, it could take longer because the agent needs to answer questions about your personal situation and car.
On the other hand, if you’re looking for a quote online as part of comparison shopping process, then getting a quote shouldn’t take long at all because they’ll just ask basic information like name and contact information before providing results.
The type of Business
When you are looking for auto insurance, it is easy to find an agent and get the quote because of the number of businesses who sell these policies.
When it comes to business insurance, it can be difficult to find the right agent. You need to figure out what type of coverage will work best for your needs. Then you have to search through each company’s website to see what they offer.
It takes longer than just going online and filling out some basic information like with an auto insurance quote.
The other reason why getting a business insurance quote takes longer is that you have more options to choose from when compared to an auto insurance quote.
For example, if you want property coverage but not liability protection then you would need both a commercial general liability policy and commercial property insurance policy which means double the work on top of figuring out how much coverage that you need.
The location of the business
When you’re starting up your own business, it takes time to get all the necessary insurance for your business.
For instance, if you’re opening a restaurant and need both property and liability insurance, you’ll need to get quotes from two different companies.
If you have employees, you’ll also need to make sure they’re covered under workers’ compensation and medical insurance plans. You’ll then need to compare these rates against what’s offered by employers in your area.
The scope of coverage: When getting a quote for auto insurance, most people just think about the cost of collision or comprehensive coverage.
However, there are many other types of coverage that may be more important than these when running a business such as crime (theft) or even general liability.
The size of the business
One of the reasons that it takes longer to get a business insurance quote than an auto insurance quote is because there are more factors to consider.
In order to get coverage, you need to list all of your employees, the types of risks you take on, and the equipment you use.
You also have to answer questions about how many days per week you’re open for business and what time periods are included in your policy.
Some states require you to provide evidence of financial responsibility before they will issue a license.
If any significant changes happen during the course of your insurance contract, such as if you purchase new property or modify your operations, then you may have to file a new application with your insurer before they will renew your policy at their discretion.
The size and complexity of these changes can make it difficult for some insurers to determine if they want to offer coverage at renewal.
The number of employees
One of the reasons that it takes longer to get a business insurance quote than it does to get an auto insurance quote is because business entities can have up to five times as many employees.
The more employees, the more risks there are and the higher the premiums will be. When you call for a quote, ask about the size of your workforce so you can make an educated decision on what type of policy would best suit your needs.
You should also mention if you run any company vehicles so you don’t end up with two different policies at different rates from the same company.
The creditworthiness of the business
One of the most important factors in determining the cost of your business insurance is your credit score.
This can be confusing because, if you have a great driving record and you live on the outskirts of town, it’s easy to get auto insurance with no credit check.
If you’re starting a new business, however, there’s no way to skip this step. You’ll need to show your bank statements or pay stubs so that they can determine how much risk you represent.
For those who don’t have perfect credit, there are ways to work around this requirement- for example by offering collateral from someone who does- but either way, it takes more time and effort than getting an auto insurance quote.
Secondly, your insurer will ask you detailed questions about the industry you’re in: You won’t just be asked What kind of business do you own? or Do you manufacture goods?
Instead, they’ll want to know what products or services you offer, whether any of these items could pose a liability hazard to others (such as dangerous chemicals), what kinds of machinery and technology your company uses (for example computer data systems), whether any hazardous materials are present at the workplace, etc.
The claims history of the business
In order to get the best rates, you will need to provide your business’s claims history. You can request this information from your previous insurer or by filling out a form that asks for the number and dollar amount of claims filed with the company in question during the past three years.
There is also the type of coverage needed: If you are a large company then coverage will cost more than if it were small. The size of the company will be determined by square footage, number of employees and how much product they carry on hand. The amount of risk involved